1.
Public sector organisations:
IBM can help you reduce
fraud and error
Fraud and error is dangerously
widespread in the public sector
Across Europe, tax
non-compliance and
services not rendered
to those eligible
have serious
consequences.
The costs to governments
and societies are
substantial
Damages
brand
reputation
Erodes
trust in
democracy
Drains
resources
Across Europe
€123.5bn
is lost from the EU economy
due to corruption every year1
76% of people think corruption
is widespread in their country2
50% believe the situation
€1tn = estimated overall
loss to tax evasion and
avoidance every year4
Around the
world in 2011
€376bn
is lost to fraud, waste, abuse
and errors in healthcare
South Africa – 14 x total
healthcare expenditure
Canada – 2.5 x total
healthcare expenditure
UK – 3 x NHS total
Every year from the
UK Government
£20bn
is lost to fraud in the
public sector5
Victims
£14.1bn Tax system
£2.6bn Central
government
£2.1bn Local government
£1.9bn Benefits and
tax credit system
Every year
across the globe
€2.7tn
is lost to occupational fraud and abuse
Based on a global study:
5% = typical loss of revenue
per organisation
>€0.7mn per case = loss for
22% of cases
€106k per case =
median loss7
IBM counter-fraud consulting
services and technology
mitigate the impact
Our counter-fraud capabilities
cover the end-to-end process
from discovery to detection,
investigation and prosecution
of fraudulent cases.
is worsening3
Equates to:
expenditure6
1. D ete ct.
Identif y potential
fraud using rules
and advanced
4. Discover.
Identif y anomalies
within the data and
unear th unknown
fraud schemes
What sets IBM apart
Our integrated solutions
give public sector
organisations more
control – helping them
to act on fraud before
it happens.
Why IBM
Unique
combines an unrivalled
analy tics
2. Resp ond.
Take the best
action in real time,
once potential
fraud has been
identified
3. Investigate.
Confirm fraud
for prosecution
and recover y
Increased effectiveness
and efficiency
Reduction of fraud,
error, waste and abuse
Controlled risk exposure
in a fast-service delivery
model
Better equity and
compliance
Protected brand
reputation
mix of technology and expertise
Flexible
offers innovative
commercial terms
Innovative
champions forward-thinking
and new capabilities
Key benefits
To see how we can create a future without fraud
and error, visit ibm.com/smartercounterfraud
1 BBC News (EU Commission) – http://www.bbc.co.uk/news/world-europe-26014387
2 European survey respondents to the Eurobarometer 2013 – EU Anti-corruption Report, March 2014
3 BBC News (EU Commission) – http://www.bbc.co.uk/news/world-europe-26014387
4 EU Commission website (2013) – http://ec.europa.eu/taxation_customs/taxation/tax_fraud_
evasion/a_huge_problem/index_en.htm
5 Annual Fraud Indicator, June 2013.
6 The Financial Cost of Healthcare Fraud 2014.
7 Report to the Nations on Occupational Fraud and Abuse, 2014 – results based on a survey
of 1,483 organisations.
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